Google to do hardware?

Google could be about to shift its focus from software and search to hardware.

The search giant, which has of late diversified into web analytics and classifieds among other services, is eyeing up the PC market, according to a report in the LA Times.

The newspaper quotes "sources" as saying Google is now in negotiations with retailers including Asda parent Wal-Mart to sell a low-cost PC or other computing device.

The paper speculates the product may well see the light of day from as early as this month, possibly during Google co-founder Larry Page's keynote speech at the CES in Las Vegas this month.

Industry watchers have also speculated the keynote may instead see the arrival of a Google-branded media gateway.